Subcontract

[Former Member]

Hi Gurus,

Our scenario is like this:

Our Customer is using SAP and he is provoiding us materials for doing further operation (subcontract). He has raised sub-contract PO on us and maintained BOM and sent the materials us for further process.

He has issued the materials through MB1B (541 movement type) and the same are showing in our stock as Vendor stock.(special stock)

In this case, If I try to issue the same to production for further process, system giving an error message that Deficit stock of XX qty in storage location.

can anybody help me how to proceed further

Thanks in adance

KK

[Former Member · Accepted solution]

Hi,

Do you use the same SAP system and client with your customer? I think you should do GR for the parts from your customer in advance, then you can do the production for further process in your system.

If you had more questions, post detailed information in your case.

Good day

Tao

[Former Member · Accepted solution]

Hello Sir,

Thanks for your valid reply.

I will expalin the scenario once again:

In our client scenario, there are 22 company codes.

Company Code 1100:

Get the order from customer.

Procure the raw material and process 2 operations.

for 3rd operation, it will be sending for sub-contracting to other 21 company codes.

can you explain how we can map this scenario in SAP

Thanks in advance

KK

[csaba_szommer · Accepted solution]

Hi Kishore,

Are you using subcontracting STO? Is it possible in inter-comapny process.

I've never tried it...

Are you getting the components at the vendor master's special stock that vendor master is assigned to the producing plant if you book MB1B + 541 refering to the STO?

If yes, maybe your concept shoudl be revised. I mean the components should be consumed by mvt 543 when the receiving plant does GR refering to the subcon-STO.

Since the components are consumed at tis time and the components are not owned by the production plant maybe they should not be in the BOM (as stock items) of the production plant.

(I do not know this process, this is only my idea)

Regards,

Csaba

[Former Member · Accepted solution]

Hi csaba,

yes exactly it is subcontracting STO. Can you tell me how we can map in SAP. I mean what are the settings required for this.

Thanks in advance

KK

[Former Member · Accepted solution]

Hi csaba,

yes exactly it is subcontracting STO. Can you tell me how we can map in SAP. I mean what are the settings required for this.

Thanks in advance

KK

[csaba_szommer · Accepted solution]

Hi,

You did not confirm all my assumptions - please do it if they are true. If my assumptions are true you should remove the subcon-components (as stock items) from the production plant's BOM and your problem will be solved.

Regards,

Csaba

[Former Member · Accepted solution]

Hi,

Thanks for quick reply. what information you require? you please confirm.

When I am issuing the material by 541 movement type, I can able to see the stock in both the company codes. but, I am not able to issue the stock for production in sub-contractor's company code.

Tell me how to proceed further.

If you can tell me the step by step, it will be a great help for me.

Thanks in advance

KK

[Former Member · Accepted solution]

Hello Gurus,

In our client scenario, there are 2 company codes and make to order strategy.

In one company code, we receive the order from the customer and we will finish 2 processes and for 3rd process, we will be sending the semifinished material to other company code for doing the same.

When we run MRP, PR generated with Account Assignment Category 'E' and converted the same into subcontract PO.

In the subcontract purchase order, Combination will be 'E' (A/c Cat Ref.) and 'L' (Item Category).

when I am trying to issue the components to sub-contract vendor, system giving error message that purchase order does not contain any item.

So, I created other storage location named job work storage location (JWS) and transferred the sales order stock to JWS storage location by using 311 movement type.

Now, I am trying to issue the components to Sub-vendor with reference to PO, system is not allowing.

can anybody tell me how can come out of this issue?

[csaba_szommer]

Hi,

It works as I suspected:

1. You have an "L" inter-company STO

2. You issue the componants via MB1B541(PO reference) to the producer company's plant. The components will get to the vendor master's special stock that is assigned to the producer company's plant.

3. The producer company's plant creates a PrdOrd (e.g. from MD04 or CO40 referint to the PldOrd) where the subcon components are not mentioned in the components list (that comes from the selected BOM), It produces the product for which the STO is created (confirmation in Co15; no mvt 261 consumption from subcon-components).

4. The producer companiy's plant creates a delivery (VL10B), picking comes and after that comes GI (e.g. VL06O).

5. The buyer compnay's plant receives the goods e.g. in MIGO with reference to the outbound delibery. the product will be received by mvt 101 and the components will be consumed by mvt 543 from vendor's special stock.

So, this process is almost same as normal subcontracting.

remark:

If you use the process with "E" "L" STO, it also works in the way described above.

Regards,

Csaba

[Former Member]

Hello Sir,

Thanks for your valid reply.

Can you explain the total scenario how it works. I mean ( in my company how to issue the materials and how vendor company will receive the same & how vendor company will despatch the goods and how I take the goods in my company) if you can tell the steps, it will be a great help for me.

Thanks for understanding

KK

[Former Member]

Hello Mr Csaba,

Thank you very much for your valid reply on subcontracting issue.

It is working perfectly. I am following the steps you have given.

I have some queries, if you can clarify the same it will be a great help for me.

I am using the process with "E" "L" STO,

You quoted:

issue the componants via MB1B541(PO reference) to the producer company's plant. The components will get to the vendor master's special stock that is assigned to the producer company's plant.

can you explain me where we have do customization for this in the issuing plant.

You quoted:

The producer company's plant creates a delivery (VL10B), picking comes and after that comes GI (e.g. VL06O).

can you eloborate the same by step by step.

Also I have seen your business card to contact you directly. If you can provide your personal email id, so that I can contact you directly.

Thanks for understanding

Bye

KK

[csaba_szommer]

Hi Kishore,

1.

issue the componants via MB1B541(PO reference) to the producer company's plant. The components will get to the vendor master's special stock that is assigned to the producer company's plant.
can you explain me where we have do customization for this in the issuing plant.

You can assign the producer plant code to the vendor master in XK02 (use the proper organisational levels) > (when you are on purchasing data screen) menu > Extras > Additional Purchasing Data

(the plant is stored in table LFA1, so it's a little bit strange that you can input it here)

2.

The producer company's plant creates a delivery (VL10B), picking comes and after that comes GI (e.g. VL06O).
can you eloborate the same by step by step.

This is part of normal "STO with delivery" process.

1. With reference to the purchase order (STO) you create the outbound delivery in issuing (producer) plant trx: VL10B (e.g.)

2. If necessary you do picking for the delivery (with WM it is almost a must, w/o WM it depends your picking requirement setting for the delivery item category). trx: VL02N (e.g.)

3. Confirmation of TO if necessary (in case of WM) trx: LT12 (e.g.).

4. PGI trx: VL06O or VL02N. (mvt 643)

3.

Also I have seen your business card to contact you directly. If you can provide your personal email id, so that I can contact you directly.

I checked your business card, there's no email address. If you reveal it, I will contact you.

Regards,

Csaba

[Former Member]

Csaba,

Thanks for your quick reply.

I am doing an implementation project for a Textile Industry and requirement is E & L with S T O.

1. I want to issue material to subcontract vendor with 541 movement type (Purchase order is E & L combination). System is issuing the error message that, purchase order does not contain any item.

Can you tell me where we can do customization for this error.

2. How can I receive the material in subcontract vendor plant (means T.code)

3. After completing the production in Subcontract vendor's plant, how we can dispatch the goods (T.code required)

4. And How can I take the goods receipt in my plant (T.Code)

Also tell me that is there any extra fields to be filled in Material Master to do this scenario.

Thanks in advance

K K

[Former Member]

Csaba,

I have updated my Business card.

please give your reply on my ID only.

Thanks in advance

KK

[csaba_szommer]

Hi Kishore,

I sent you an email, but I give my answers here, maybe others can use it or someone can correct me if I'm mistaken.

As for your questions:

1. MB1B + 541 for PO with "E"&"L" > error message

If you use sales order special stock, the scenario depend on your settings in material master. Please check SAP online help:

http://help.sap.com/erp2005_ehp_04/helpdata/EN/4d/2b90b043ad11d189410000e829fbbd/frameset.htm

If the indicator is set at Collective requirements only (2), the materials are withdrawn from the stock of material provided to vendor. If this indicator is set any other way, the system withdraws materials from sales order stock or project stock. 

2. Receive components in the producing plant (intercompany STO)

Since the plant under other company belongs to another valuation area, I'm not sure it is "possible". I couldn't find anything in SAP to solve this.

Maybe you could use non valuted material independently form the original STO to map this process.

In this case the components has to appear as stock items in the BOM, in the producer plant.

Just my opinion.

3. Dispatch goods form subcontractor's plant

In VL10B, refering to the STO.

4. Depends on your practice / decision.

You can use MIGO + reference to the outbound delivery of issuing plant, or you can use inbound delivery.

5. I'm not sure what you are thinking of. Please check my answer in point 1).

Regards,

Csaba

[Former Member]

Hello Sir,

Thank you so much for your valid reply on the subject matter.

There are 2 company codes under my client.

Company A is sending material to Company B for Job work.

How can I maintain the Material Masters in both the company codes / plant (means steps), so that, I can move further.

You said that maintain as non-valuated stock at Company B. ( I did not understand the same), if you can elaborate the same, it will be helpful.

Thanks in advance.

KK

[csaba_szommer]

Hi Kishore,

Maybe experts can correct me if I'm mistaken but I'm not aware of any solution that would solve the component flow between the two plants (that are under different companies) in this scenario.

Povision of components can be done only between the ordering plant and the vendor master of receiving plant.

Non-valuated material idea is just a workaround.

If you want to receive the components in the producer plant you can't receive them trough mvt 541 with or w/o reference to the STO - that's why a workaround has to be applied. (I think it's very natural requirement to have information on components in the producer plant.)

One workaround might be to use a material (number) with no-value-update setting. E.g. you receive 100 pcs component from the ordering plant > you book GR of 100 pcs (e.g. mvt 501), independently from the STO, using the non-valuated material. In this case you should write it in the BOM and you can consume it by mvt 261 when you make confirmation against PrdOrd.

If you use a Z material type for the components both in ordering and issuing plant, you can set it valuated as non valuated under the different plants.

I have no better idea...

Regards,

Csaba